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SC Criticizes Uttarakhand for Misuse of CAMPA Funds

SC Criticizes Uttarakhand for Misuse of CAMPA Funds

07-03-2025

  1. In March 2025, the Supreme Court of India criticized the Uttarakhand government.

  2. The government failed to file an affidavit in a case about the misuse of CAMPA (Compensatory Afforestation Fund Management and Planning Authority) funds.
  3. These funds were meant for planting trees to compensate for deforestation.
    1. Deforestation = Cutting down trees.
    2. Afforestation = Planting trees to create new forests.
  4. However, these funds were misused to buy gadgets.
  5. The court said the matter is very important and SC ordered the government to submit the affidavit immediately.

CAMPA Act (Compensatory Afforestation Fund Act)
 

  1. The Compensatory Afforestation Fund Act (CAMPA) is a law in India that manages funds collected when forest land is diverted for non-forest purposes.
  2. The goal is to ensure that these funds are used efficiently and transparently for afforestation and forest conservation.
     

Background and History:
 

  1. Supreme Court’s Intervention (2002):
    1. In 2002, the Supreme Court of India noticed that funds collected for afforestation were being underutilized by the states.
    2. The Court ordered that these funds should be centrally pooled and managed by a special authority to ensure proper use.
  2. Creation of National CAMPA (2002):
    1. The National Compensatory Afforestation Fund Management and Planning Authority (National CAMPA) was set up to manage the centrally pooled funds for afforestation.
  3. State CAMPA (2009):
    1. In 2009, states created their own State CAMPA bodies.
    2. These State CAMPAs receive 10% of the funds from National CAMPA for use in afforestation and forest conservation at the local level.
  4. CAG Report (2013):
    1. In 2013, a CAG report revealed that the funds were still being underutilized despite the creation of National and State CAMPA bodies.
  5. Introduction of CAMPA Act (2015):
    1. To address the underutilization, the government introduced the Compensatory Afforestation Fund Act, 2015.
    2. The Act was presented in the Lok Sabha on May 8, 2015, for discussion.
    3. It was examined by a standing committee and passed in the Rajya Sabha on July 28, 2016.
       

Key Features of the CAMPA Act:
 

  1. Efficient Fund Utilization:
    1. The Act ensures that funds collected for afforestation are used in a transparent and efficient manner for their intended purpose.
  2. Central and State Authorities:
    1. The Act sets up a mechanism both at the Centre and in each State/Union Territory for better management of the funds.
    2. National CAMPA manages funds centrally, and State CAMPA manages local afforestation efforts.
  3. Accountability:
    1. The Act ensures accountability in how funds are used, making sure they are not diverted for unrelated purposes.
  4. Use of Funds:
    1. The funds collected through CAMPA are to be used for compensatory afforestation, forest conservation, and improvement of biodiversity.

 

CAG Report: Misuse of Funds (Feb 2025):
 

A report by the Comptroller and Auditor General (CAG), published on February 21, 2025, highlighted serious misuse of CAMPA funds by the Uttarakhand government.
 

  1. Misuse of Funds:
    1. The CAG report found that Rs 13.86 crore of CAMPA funds were misused.
    2. These funds were meant for planting trees but were spent on items like iPhones, laptops, refrigerators, coolers, and even building renovations.
       
  2. Problems with Afforestation:
    1. Delays: According to CAMPA rules, tree planting should happen within 1–2 years of receiving funds.
    2. However, the report showed that in 37 cases, the afforestation projects were delayed by more than eight years. This caused an extra cost of Rs 11.54 crore.
    3. Low Survival Rate: The survival rate of the planted trees was only 33.51%. This is much lower than the required survival rate of 60–65% set by the Forest Research Institute.
       
  3. Unsuitable Land for Afforestation:
    1. The report revealed that 1,204 hectares of land were not suitable for planting trees.
    2. However, the land was wrongly certified as suitable by the Divisional Forest Officers (DFOs).
    3. No action was taken against these officers for their mistakes.
       

CAG’s Recommendations:
 

The CAG made several recommendations:

  1. Better Financial Management: The government should set up stronger checks to prevent misuse of funds.
  2. Accountability: The officers responsible for the misuse of funds and delays in afforestation should face disciplinary action.
     

Impact and Significance:
 

  1. Environmental Impact:
    1. Misusing CAMPA funds harms the environment.
    2. Uttarakhand has critical forests for biodiversity and climate protection.
    3. Delayed afforestation and low tree survival rates harm these forests.
  2. Loss of Public Trust:
    1. When public money is misused, it undermines the trust that people have in the government.
    2. This is especially true when funds meant for the environment are wasted.
  3. Role of the Judiciary:
    1. The Supreme Court’s involvement shows the importance of judicial oversight.
    2. The court is making sure the government is held accountable for how public funds are used.

Comptroller and Auditor General (CAG) of India
 

  1. CAG is the head of the Indian Audit and Accounts Department.
  2. The CAG is known as the guardian of the public purse, responsible for auditing the finances of both the Centre and States.
  3. CAG ensures that public funds are used in line with the laws of the Constitution and Parliament.
  4. The CAG is one of the key pillars in the Indian democratic system, ensuring transparency and accountability in government finances.
     

Constitutional and Legal Provisions for CAG:
 

  1. Article 148:
    1. Appointment: The President appoints the CAG.
    2. Salary and Service Conditions: Decided by Parliament.
    3. Eligibility for Office: The CAG cannot hold any other office after leaving this position.
    4. Expenses Charged on the Consolidated Fund of India (CFI): All expenses related to the CAG’s office, including salary and pensions, are paid from the CFI.
  2. Article 149:
    1. The CAG performs duties and powers as prescribed by Parliament.
  3. Article 150:
    1. The CAG advises on the format of accounts for both the Centre and States.
  4. Article 151:
    1. The CAG submits its reports to the President for presentation in Parliament.
  5. Article 279:
    1. The CAG certifies the net proceeds of taxes or duties, and this certification is final.
  6. CAG’s (Duties, Powers, and Conditions of Service) Act, 1971:
    1. Tenure: 6 years or until the age of 65 years, whichever is earlier.
    2. Resignation: Can resign anytime by addressing a letter to the President.
    3. Removal: Can be removed in the same manner as a judge of the Supreme Court.
    4. Service Conditions: Salary and service conditions cannot be reduced to the disadvantage after appointment.

Duties and Powers of the CAG:

  1. CAG audits all accounts related to the Consolidated Fund of India, the Contingency Fund of India, and the public accounts of both the Centre and States.
  2. Audits accounts of government departments, local bodies, and other authorities when requested.
  3. CAG checks that all government expenditures are according to rules and regulations, ensuring there is no misuse of funds.
  4. Audits debt, sinking funds, deposits, and advances to ensure financial integrity.
  5. CAG advises the President on the format of accounts for the Centre and States.
  6. CAG submits its audit reports on central accounts to the President and those on state accounts to the respective state Governor.
     

Role of CAG in the Public Accounts Committee (PAC):
 

  1. Audit Reports: CAG submits three audit reports: Appropriation Accounts, Finance Accounts, and Public Undertakings.
  2. PAC Examination: These reports are examined by the Public Accounts Committee (PAC), which helps ensure government accountability, especially in terms of financial spending.
  3. Accountability and Checks: CAG works closely with PAC to ensure that financial rules are followed and corrective actions are taken when necessary.
  4. Interpreter Role: CAG acts as an intermediary, explaining technical financial matters to Parliament and translating politicians' concerns to the executive.
     

Difference Between the Office of CAG in India and Britain:
 

CAG in India

CAG in Britain

Acts only as Auditor General.

Acts as both Comptroller and Auditor General.

Audits accounts after expenditure is committed (ex post facto).

Money cannot be drawn without approval from the Comptroller.

CAG is not a member of Parliament.

CAG is a member of the House of Commons.

 

Challenges Faced by the Office of CAG in India:
 

  1. Limited Powers: CAG faces delays in obtaining information and cannot enforce its requests.
  2. Secret Service Expenditure: CAG is unable to inquire into certain secret service expenditures without relying on certificates from executive agencies.
  3. Lack of Clarity: There is debate over whether CAG can audit certain sectors like Public-Private Partnerships (PPP) and power distribution companies.
  4. Delays in Reports: The number of reports submitted by CAG has reduced significantly, affecting transparency.
  5. Conflict of Interest in Appointment: The current process for selecting CAG is seen as politically influenced.

 

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